I deserve a tax break — take my word for it!
Under a system that’s stunningly ripe for fraud, the cash-strapped city hands out hundreds of millions in tax exemptions — without a single question or background check to verify applicants’ eligibility, The Post has learned.
“I was shocked. In any system where there’s an honor system there’s a greater potential for fraud,” Councilman Vincent Ignizio (R-SI), said yesterday. “All it’s going to take is one person figuring it out and then it’s going to spread like wildfire.”
The city Department of Finance said it granted nearly $300 million in property-tax exemptions in fiscal year 2010 to about 789,600 residents, including seniors, veterans, disabled and clergy members.
To qualify, property owners merely had to hand in a signed application claiming eligibility and listing a Social Security number, date of birth and address in one of the five boroughs.
No other documentation — such as proof of age for seniors or discharge papers for veterans — is required.
City bureaucrats told Ignizio staffing shortages made tougher, more thorough checks impossible.
But Ignizio said the lax oversight — discovered when he was helping a constituent with paperwork — invites abuse, potentially wasting taxpayers’ money while the city wallows in a post-recession cash crunch.
“There’s [potential for] out-and-out fraud that you and I end up having to make up the difference for in higher taxes,” said Ignizio, who is pushing for legislation to tighten up the rules.
“I believe this requires an investigation from the administration,” he said.
A Finance spokesman acknowledged Ignizio’s contention, and said the department is looking to toughen the process.
The largest amount of exemptions last fiscal year were under New York State’s School Tax Relief or STAR program, with 673,000 residents receiving $187 million. Forty-six thousand seniors got $81.6 million, and 66,000 veterans got $23 million.
Ignizio said the legislation he’s drafting would require applicants to submit documentation such as proof of age or military service. He said applicants for the STAR exemptions should be required to prove the eligible property is their primary residence.
